We model the choice of loan currency in a framework which features a trade-off between lower cost of debt and the risk … to foreign currency loans, as they do not bear the full cost of the corresponding credit risk. …

risk. These connections lead to two different network structures. In a clustered network groups of financial institutions … expectations are low, they do not roll over the debt and there is systemic risk in that all institutions are early liquidated. We …

This paper finds that shareholder-friendly corporate governance is positively associated with bank insolvency risk, as …-2008 period. Banks are special in that ‘good’ corporate governance increases bank insolvency risk relatively more for banks that … capital ratio. Furthermore, ‘good’ corporate governance is associated with more bank risk taking at times of rapid economic …

reduce bank risk taking. An unintended effect of such actions may be a reduction in bank liquidity creation, with possible … and capital support on bank risk taking and liquidity creation using a unique dataset over the period 1999-2009. We find … that both types of actions are generally associated with statistically significant reductions in risk taking and liquidity …

experiment to examine the effect of government guarantees on bank risk taking, using a large data set of matched bank …/borrower information. The results suggest that banks whose government guarantee was removed reduced credit risk by cutting off the riskiest …